The U.S. and China, facing mounting political pressures at home, are seeing economic tensions flare to their worst point in years over currency and trade practices.

China has agreed to scrap some export subsidies on a range of products from metals to agriculture and textiles, the United States said on Thursday, in a step by Beijing to reduce trade frictions with Washington.

The White House touted its undefeated record on unfair trade practices Thursday, after China agreed to eliminate subsidies that the United States claimed gave its industries an unfair advantage.

China’s exports jumped the most in 18 months and declines in imports narrowed, adding to evidence of stabilization in the world’s second-biggest economy. Stocks rallied.

China’s foreign exchange reserves gained US$10 billion in March, in a sign of abating panic over the prospects of the world’s second biggest economy and the outlook of its currency.

China's exporters say an unstable yuan exchange rate, rising costs and financial difficulties remain their main problems, but they expect trade performance to improve in 2016 from last year, the commerce ministry said on Thursday.

China's exports fell 25.4 percent on-year in February, while imports declined 13.8 percent, clocking far bigger slides than expected by analysts.

Chinese officials are lowering the import taxes on a number of consumer goods–ranging from clothing and sunglasses to bags and blankets–starting next year, according to a statement Wednesday by the Ministry of Finance.

China’s trade with the rest of the world continued to shrink in November, in the latest negative sign for growth in the world’s second-largest economy.

In their first top-level trade talks since President Obama hosted China’s leader in September, the United States and China said on Monday that they had made progress on sticking points, including preventing the theft of trade secrets and opening the Chinese market more broadly to American multinationals.